Brokers' take

This article is more than 12 months old

Compiled by Kenneth Lim



AUG 3 CLOSE: $1.195

CIMB Research, Aug 3

As we have been too conservative in our VIP win rate assumptions for FY17-19 forecasts, we now increase our forecasts to 2.9 per cent versus 2.75 per cent previously.

We have also toned down our operational cost estimates as we were previously too aggressive in forecasting other costs.

Our changes result in FY17/18/19 forecast earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 11 per cent/9.9 per cent/9.7 per cent, lifting our earnings per share by 18 per cent/15.9 per cent/15.6 per cent.

We maintain our "add" rating. The upgrade to our adjusted EBITDA forecasts lifts our target price to $1.35, still based on an unchanged FY18 forecast enterprise value to EBITDA of 12 times (slightly above its six-year mean of 11.3 per cent).

Potential re-rating catalysts are higher-than-expected margins and better gaming revenues. Downside risks are a fall in gaming revenues, higher trade receivable provisions and failure to secure opportunities in Japan.



AUG 3 CLOSE: $1.73

RHB Research, Aug 3

BreadTalk has generated a 55 per cent return year-to-date. We now roll over our valuation to FY18 forecast and derive a higher target price of $1.83 (from $1.60, 2 per cent upside).

Downgrade to "neutral" as the market has priced in BreadTalk's near-term growth outlook. Key upside catalysts for the stock include divestment gain from property investments, faster-than-expected rollout of bakery franchisees and reduction in effective tax rate.



AUG 3 CLOSE: $2.15

DBS Group Research, Aug 3

Sunningdale delivered a good set of results; earnings increased by 6.5 per cent quarter-on-quarter and 115.3 per cent year-on-year to $8.2 million in Q2 FY17.

Strong order momentum - especially for consumer/IT segment - and efficiency gains were key drivers. Capacity expansion and ongoing business development initiatives to pave the way for longer-term growth.

Proposed maiden interim dividend of 2.5 Singapore cents.

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